The Ethereum price has initiated a decline after hitting a resistance at around $2,700. Currently, Ethereum is holding above the $2,550 support level, suggesting potential further growth may occur.
- Ethereum is aiming for a fresh increase from the $2,550 support.
The price is trading below $2,620 and the 100-hourly Simple Moving Average.
There is a connecting bearish trend line forming with resistance at $2,620 on the hourly chart of ETH/USD (data feed via Kraken).
The pair must stay above the $2,550 support to start a fresh increase in the near term.
Ethereum Price Sees Downside Correction
The cost of Ethereum found it challenging to surpass the barrier at $2,700. Similar to Bitcoin, Ethereum established a peak around $2,700 and subsequently experienced a price decline. This downward movement caused the value to dip below the $2,620 mark.
The price dipped below the $2,600 threshold and reached as low as $2,550. It hit a new low at $2,554. Now, it’s trying to rise again. It surpassed the $2,580 mark. Ether has moved beyond the 23.6% Fibonacci retracement level of its downward slide from the $2,701 peak to the $2,554 trough.
Currently, Ethereum’s trading value has dipped below the $2,620 mark and also falls short of the 100-hour Simple Moving Average. On the positive side, there appear to be obstacles for the price around the $2,600 threshold. The initial significant resistance can be found at the $2,620 level.
As an analyst, I’ve noticed a developing bearish trendline on the hourly ETH/USD chart, with a key resistance point at approximately $2,620. This trendline is not far from the 50% Fibonacci retracement level of the downward journey from the $2,701 peak to the $2,554 trough.
If Ether manages to surpass the current resistance at around $2,645, it may push further upwards, potentially reaching the resistance area of $2,700 in the short term. However, significant challenges lie ahead at approximately $2,720 or $2,800 levels, which could act as obstacles for its continued growth.
Another Drop In ETH?
If Ethereum doesn’t manage to surpass the $2,620 barrier, there might be a renewed drop. A potential floor for this decline could be around $2,550. However, a more significant support level lies near $2,525.
If the price falls significantly below $2,525, it could potentially drop to around $2,450. Further declines may lead towards the nearby $2,400 support. The critical level of support that follows is at approximately $2,320.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 zone.
Major Support Level – $2,550
Major Resistance Level – $2,620
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2024-09-26 06:40